EX-99.1 2 ex_153805.htm EXHIBIT 99.1 ex_153805.htm

Exhibit 99.1

 

1245 “Q” Street

Lincoln, NE 68508

Phone: 402-475-2525

Fax: 402-475-9061

 

 

Contact:

Kevin R. Karas

Chief Financial Officer

402-475-2525

 

 

NATIONAL RESEARCH CORPORATION ANNOUNCES

SECOND QUARTER 2019 RESULTS

 


 

LINCOLN, Nebraska (August 6, 2019) — National Research Corporation (NASDAQ:NRC) today announced results for the second quarter of 2019.

 

 

Net New Sales of $6.1 million up 14%

 

Revenue increased 12% to $31.4 million

 

Operating Income increased 31% to $10.1 million

 

Voice of the Customer (VoC) platform revenue increased by 38%

 

Commenting on recent performance, Michael D. Hays, chief executive officer of National Research Corporation said, “The Company’s performance for the quarter was extremely strong and that momentum continues in the third quarter with the signing of the largest new client contract of the year.”

 

Revenue for the quarter ended June 30, 2019 was $31.4 million, compared to $28.0 million for the same quarter in 2018. Net income for the quarter ended June 30, 2019, was $7.4 million, compared to $7.9 million for the quarter ended June 30, 2018. Diluted earnings per share increased to $0.29 for the common stock (formerly Class A) for the quarter ended June 30, 2019, from diluted earnings per share of $0.28 for Class A shares and $0.26 for Class B shares for the quarter ended June 30, 2018. Due to the recapitalization transaction on April 17, 2018, income has been allocated to both classes of shares through April 16, 2018, and allocated only to common stock (formerly Class A) after April 16, 2018.

 

Regarding the Company’s second quarter financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “Our sales performance continues to gain momentum with our total net new sales for the trailing four quarters increasing by over 13% compared to the prior four quarters. The continued focus on adding new customers to the VoC platform solution and driving value for existing customers resulted in an increase in total contract value in the second quarter of 7% over the prior year and expansion of operating income margins to 33% on a year-to-date basis.”

 

 

 

NRC Announces Second Quarter 2019 Results

Page 2

August 6, 2019

 

 

A listen-only simulcast of National Research Corporation’s 2019 second quarter conference call will be available online at http://edge.media-server.com/mmc/p/vcr2isv8 on August 7, 2019, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately one hour later and continue for 30 days.

 

For more than 38 years, National Research Corporation has been a leading provider of analytics and insights that facilitate measurement and improvement of the patient and employee experience while also increasing patient engagement and customer loyalty for healthcare providers, payers and other healthcare organizations in the United States and Canada. The Company’s solutions enable its clients to understand the voice of the customer with greater clarity, immediacy and depth.

 

This press release includes “forward-looking” statements related to the Company that can generally be identified as describing the Company’s future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect the Company’s future results, please see the Company’s filings with the Securities and Exchange Commission.

 

-END-

 

NRC Announces Second Quarter 2019 Results

Page 3

August 6, 2019

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Statements of Income

(In thousands, except per share data)

 

   

Three months ended
June 30,

   

Six months ended
June 30,

 
   

2019

   

2018

   

2019

   

2018

 
                                 

Revenue

  $ 31,414     $ 28,017     $ 62,894     $ 59,034  
                                 

Operating expenses:

                               

Direct expenses

    11,506       10,996       23,160       23,160  

Selling, general and administrative

    8,319       7,940       16,026       15,808  

Depreciation and amortization

    1,440       1,325       2,855       2,608  

Total operating expenses

    21,265       20,261       42,041       42,320  
                                 

Operating income

    10,149       7,756       20,853       16,714  
                                 

Other income (expense):

                               

Interest income

    8       9       14       54  

Interest expense

    (533 )     (439 )     (1,103 )     (447 )

Other, net

    (139 )     493       (419 )     464  
                                 

Total other income (expense)

    (664 )     63       (1,508 )     71  
                                 

Income before income taxes

    9,485       7,819       19,345       16,785  
                                 

Provision (benefit) for income taxes

    2,092       (129 )     3,756       1,531  
                                 

Net income

  $ 7,393     $ 7,948     $ 15,589     $ 15,254  
                                 

Earnings Per Share of Common Stock:

                               

Basic Earnings Per Share:

                               

Common (formerly Class A)

  $ 0.30     $ 0.29     $ 0.63     $ 0.47  

Class B

  $ --     $ 0.27     $ --     $ 1.31  

Diluted Earnings Per Share:

                               

Common (formerly Class A)

  $ 0.29     $ 0.28     $ 0.61     $ 0.45  

Class B

  $ --     $ 0.26     $ --     $ 1.27  
                                 
Weighted average shares and share equivalents outstanding                                

Common (formerly Class A) - basic

    24,789       23,957       24,777       22,429  

Class B - basic

    --       3,527       --       3,527  

Common (formerly Class A) - diluted

    25,586       24,846       25,549       23,350  

Class B - diluted

    --       3,620       --       3,628  

 

-END- 

 

NRC Announces Second Quarter 2019 Results

Page 3

August 6, 2019

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Balance Sheets

(Dollars in thousands, except per share amounts and par value)

 

   

June 30,

2019

   

December 31,

2018

 
                 

Assets

               

Current assets:

               

Cash and cash equivalents

  $ 4,020     $ 12,991  

Accounts receivable, net

    15,087       11,922  

Income taxes receivable

    637       348  

Other current assets

    3,144       3,149  

Total current assets

    22,888       28,410  
                 

Net property and equipment

    13,872       14,153  

Goodwill

    57,922       57,831  

Other, net

    9,593       7,638  

Total assets

  $ 104,275     $ 108,032  
                 

Liabilities and Shareholders’ Equity

               

Current liabilities:

               

Notes payable and line of credit

  $ 4,890     $ 3,667  

Accounts payable and accrued expenses

    3,999       3,447  

Accrued compensation

    5,535       5,798  

Income taxes payable

    43       636  

Dividends payable

    4,727       17,113  

Deferred revenue

    16,988       16,244  

Other current liabilities

    894       204  

Total current liabilities

    37,076       47,109  
                 

Non-current liabilities

    41,232       41,840  

Total liabilities

    78,308       88,949  
                 

Shareholders’ equity:

               

Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued

    --       --  

Common stock, $0.001 par value; authorized 60,000,000 shares, issued 30,027,919 in 2019 and 29,917,667 in 2018, outstanding 24,879,414 in 2019 and 24,800,796 in 2018

    30       30  

Additional paid-in capital

    158,691       157,312  

Retained earnings (accumulated deficit)

    (100,201

)

    (106,339

)

Accumulated other comprehensive loss, foreign currency translation adjustment

    (2,296

)

    (2,916

)

Treasury stock

    (30,257

)

    (29,004

)

Total shareholders’ equity

    25,967       19,083  

Total liabilities and shareholders’ equity

  $ 104,275     $ 108,032  

 

-END-